18
CONSTRUCTION WORLD
MARCH
2014
This month (January 2014) the International Property Measure-
ment Standards Coalition (IPMSC) has launched a public
consultation on the new International Property Measurement
Standard (IPMS) for office buildings.
The three month consultation, closing on 4 April 2014, is calling for
real estate (office) sector practitioners and stakeholders to contribute
to the new international standard.
The new standard, produced by the IPMSC Standards Setting
Committee, is the first of its kind and will provide a common language
for measuring offices across international markets, benefiting
real estate practitioners including investors, lenders, agents, valuers
and occupiers.
The international standard will ensure that property assets are
measured in a consistent way, creating a more transparent market-
place, greater public trust, consistency in the reporting of property size,
stronger investor confidence, and increased market stability.
At present, the way property assets – such as homes, office build-
ings or shopping centres – are measured varies dramatically from one
market to the next. With so many different methods of measurement
in use, it makes it difficult for global investors, occupiers and tenants
to accurately compare space. Research by global property firm Jones
Lang LaSalle suggests that, depending on themethod used, a property’s
floor area measurement can deviate by as much as 24%.
IPMS will be adopted by all 28 coalition organisations with
firms around the world already lined up to implement IPMS from
June 2014. The Dubai Government are the first government to
commit to its adoption, which will underpin valuations of commercial
property and financial reporting through IVS (International Valuation
Standards) and IFRS (International Financial Reporting Standards).
The new standard is considered one of the most significant devel-
opments in the real estate profession in recent history and will go
beyond office measurement standardisation to include other property
types, such as residential, in the coming months.
Strengthening public accountability of the IPMSC, the coalition can
now announce the appointment of a Board of Trustees. Members from
each of the 28 organisations are represented on the board, chaired
by Ken Creighton (RICS), with Vice Chair Lisa Prats (BOMA Interna-
tional) and Secretary General, Jean-Yves Pirlot (CLGE). As a leading
professional (standard-setting) organisation in the property industry
in South Africa, SAPOA (South African Property Owners Association)
is a member of this 28-strong coalition.
The coalition also confirms new IPMS members joining the coali-
tion. Property Council of New Zealand (PCNZ); Asian Non-listed Real
Estate Vehicles (ANREV), Assoimmobiliare, National Society of Profes-
sional Surveyors (NSPS) and Japan Association of Real Estate Agents
(JAREA) have committed to the standards programme.
“Less than a year after the coalition met for the first time at the
World Bank in Washington, we now have an international standard.
This standard will undoubtedly have a profound and lasting benefit
for the global real estate industry, financial markets and society as a
whole, ensuring transparency and consistency are at the very heart
of this global industry,” says Ken Creighton, chair of the IPMSC Board
of Trustees and RICS director of professional standards
Billy Davidson, Vodafone global property director says: “Vodafone
occupies space for a wide range of uses all around the world. Like
many other corporates we have had to develop our own means of
benchmarking these property assets. I am certain that IPMS will save
corporate occupiers time, money and effort across their property
portfolios, and will enable us to compare space between companies
far more easily than today.”
“The usable space within a building is a vital metric in understanding
the valuation and thus investment potential of a property.
“Investors currently suffer from having to make decisions based
on information which is inconsistent from one market to the
next. IPMS will address this existing problem; removing risk and
ensuring property investors are armed with reliable and transparent
information,” adds Martin Bruehl, Union Investment, head of interna-
tional investment management.
ships across the value chain. There is a good fit strategically and
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sense to us on all levels.”
Albert Pretorius, director at RentWorks Namibia says, “The
launch of RentWorks Namibia means that we will be able to offer
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We believe that there is definite growth potential for us in the ICT
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About RentWorks Africa
Currently financing over R3-billion worth of assets for more
than 400 organisations across most industries and asset types,
Rentworks is South Africa's leading asset rental company.
It is product and brand independent and focus on offering
our clients intelligent, cost-effective asset rental solutions
covering the entire asset life cycle (acquire, manage and return).
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PROPERTY
CHANGE AROUND THE CORNER
International Property Measurement Standards
Coalition (IPMSC) launches public consultation
on new international measurement standard and
appoints Board of Trustees.
Variation in property measurement globally. (Courtesy
/)
Infographic: from 929 m
2
to 706 m
2
in five steps.
>
